S&P 500 Price Forecast – Stock Markets Continue to Show Weakness

The S&P 500 has fallen a bit during the course of the trading session on Monday, as the 50 day EMA has offered a significant amount of resistance. Nonetheless, we continue the overall consolidation and therefore we need to think of this in that vein of thought. Looking at this chart, the market has a major uptrend line underneath, and of course we have the large, round, psychologically significant figure in the form of 4500, which is an area that has been important previously.

S&P 500 Video 06.12.21

Looking underneath, if we break down below there then we have the 200 day EMA sitting just below the 4300 level. It is rising, and of course we have the 4200 level underneath that has offered significant support. All things being equal, this is a market that continues to be “buy on the dip”, as we have seen so much in the way of bullish pressure over the last several months.

That being said, it is a market that has struggled to rally recently, as Jerome Powell has dropped the idea of the word “transitory” being used as describe inflation in America. Nonetheless, this is a market that still has plenty of support and of course you simply do not short US indices, because there is so much in the way of central bank madly in every time they start to fall apart. Furthermore, we also have to worry about the “Santa Claus rally” when fund managers will have to chase returns. That should be kicking off rather soon, so obviously it is only a matter of time before I will be a buyer yet again.

For a look at all of today’s economic events, check out our economic calendar.